IPA Today

Red Tape Cuts A Great First Step: IPA

Written by
16 February 2022
RED TAPE CUTS A GREAT FIRST STEP

“The red tape reduction achievements outlined today by Ben Morton demonstrates economic vision and leadership and provides the foundation for an even more ambitious deregulation agenda,” said Daniel Wild, Director of Research at free market think tank the Institute of Public Affairs.

The Minister for the Public Service and Minister Assisting the Prime Minister and Cabinet, the Hon. Ben Morton MP, today outlined in a speech delivered to the Institute of Public Administration the federal government’s progress in cutting red tape, which is expected to deliver $21 billion in economic benefits over the next decade.

Long term research and analysis by the Institute of Public Affairs has consistently highlighted the magnitude of the red tape burden in Australia, and how red tape undermines economic prosperity and job creation.

Institute of Public Affairs’ research has estimated that red tape costs the Australian economy $176 billion each year in terms of forgone economic output. This is more than double what the federal government collects each year in corporate tax.

“Cutting red tape will be central to Australia’s economic recovery as we emerge from the COVID-19 crisis which has cost jobs and investment,” said Mr Wild.

“Minister Morton’s observation that a regulatory response may not be best is exactly right. Governments need to stop the regulate now, ask questions later approach.”

The Leader of the Opposition Anthony Albanese acknowledged on 27 January in the Australian Financial Review that red tape was driving up business costs and reducing productive growth with the effect of lower wages and fewer jobs.

“This shows that bi-partisan momentum is building to cut red tape to support Australia’s economy recovery from COVID-19.”
“Australia’s economy is on its knees. New private sector business investment has plummeted to a record low of just 10.6% which is well below the 15% which prevailed during the economically hostile Whitlam-era,” said Mr Wild.

This positive start can be built on with the following initiatives:

  1. Implement the highly successful one-in-two-out approach undertaken by the Trump administration, where two regulations are repealed for every new regulation introduced.
  2. Federal government to immediately cease regulating any business activity which is already regulated at the state or local level.
  3. Abandon the policy of net zero emission by 2050, which will significantly increase the red tape burden, cripple industry, and make Australia economically vulnerable to China.

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Daniel Wild

Daniel Wild is the Deputy Executive Director at the Institute of Public Affairs

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